Cantor Fitzgerald maintains Neutral stance on Check Point stock amid mixed results

Published 15/08/2025, 14:30
© Reuters.

Investing.com - Cantor Fitzgerald has reiterated its Neutral rating and $220.00 price target on Check Point Software (NASDAQ:CHKP) following the company’s second-quarter 2025 financial results. According to InvestingPro data, the company maintains impressive gross profit margins of 88% and shows strong financial health with a GOOD overall score.

Check Point reported moderate revenue growth of 6% year-over-year in Q2 2025, primarily driven by product demand and refresh activity, according to Cantor Fitzgerald’s analysis. The company’s solid financial position is reflected in InvestingPro data showing more cash than debt on its balance sheet, while management has been actively buying back shares.

The cybersecurity firm faced challenges as subscription sales and billings fell short of expectations, with several large contracts experiencing deal slippage that delayed them into early third quarter.

Cantor Fitzgerald noted that while Check Point is investing in Secure Access Service Edge (SASE) and Harmony Email solutions, competitive pressures raise concerns about the company’s ability to maintain strong subscription growth.

The firm also highlighted that Check Point’s margins declined slightly during the quarter, though cash flow remained solid, suggesting cautious visibility amid ongoing market headwinds.

In other recent news, Check Point Software Technologies Ltd. reported better-than-expected second-quarter results, with a 6% increase in revenue driven by strong performance in its emerging technologies portfolio and Quantum Force appliances. Despite the positive revenue growth, several analysts have adjusted their price targets for the company. Scotiabank reduced its price target to $220 from $240, citing a deceleration in billings and Revenue Performance Obligations growth. Cantor Fitzgerald also lowered its price target to $220 from $230, even though Check Point beat FactSet consensus top-line estimates, indicating solid product demand.

Stifel reduced its price target to $200 from $220, describing the quarter as "mixed/noisy," with some metrics exceeding expectations while others fell short. Mizuho cut its price target to $215 from $240, noting that total second-quarter billings growth of 3%-4% year-over-year to $642 million missed Street estimates of $649 million. The shortfall was attributed to several seven-figure deals being delayed into the third quarter, though these deals have since closed. These developments provide investors with a comprehensive view of Check Point’s recent performance and the varied analyst perspectives on the company’s outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.